Internship Report_Marketing Mix of Haldirams

Summer Internship Project Report

On

EFFECTIVENESS OF MARKETING MIX OF HALDIRAM FOODS INTERNATIONAL LIMITED – A RETAILERS VIEW

By

Krutika Khadgi

A0101910139

MBA- Class of 2012

Under the Supervision of

Dr. J.K Sharma

Professor

Department of Operations Management

In Partial Fulfilment of the Requirements for the Degree of Masters of Business Administration

At

AMITY BUSINESS SCHOOL

AMITY UNIVERSITY UTTAR PRADESH

SECTOR-125, NOIDA-201303, UTTAR PRADESH, INDIA

2011

1

DECLARATION

EFFECTIVENESS OF MARKETING MIX OF HALDIRAM FOODS INTERNATIONAL

LIMITED – A RETAILERS VIEW

I declare

(a) That the work presented for assessment in this Summer Internship Report is my own,

that it has not previously been presented for another assessment and that my debts (for

words, data, arguments and ideas) have been appropriately acknowledged.

(b) That the work conforms to the guidelines for presentation and style set out in the

relevant documentation.

Date: Krutika Khadgi

A0101910139

MBA- Class of 2012

2

ACKNOWLEDGEMNET

After a year or long so of classroom sessions during my MBA, Summer Internship Program

has been an experience to take on the real world challenges. Moving out of the cosy confines

of the college, my first industry interface as a budding manager could never have been easy

without the full extended support of many people making my experience a learning as well as

ineffaceable experience. I wish to extend my sincere thanks to all the people who directly or

indirectly helped me sail through.

My first and foremost gratitude is to Mr. Shivkishan Agarwal for providing me with this

opportunity to work at Haldiram Foods International Limited.

I am grateful to Mr. V S Rao (Personnel Manager) for providing me with the opportunity to

work with the marketing team of the company.

I would like to thank Mr. Satpati (Marketing Manager) for his support to help me progress

through the project.

My sincere thanks to my Industry Guide Mr. Samuel Ramalingam (Regional Sales Manager)

for encouraging me throughout the project not only with his valid suggestions but also a

source of unbreakable support and inexhaustible source of inspiring energy through various

stages of the project.

I am also thankful to al the staff (distributors, sales officers, sales representatives, drivers) of

Haldiram Foods International Limited for their kind support and sincere suggestions from

time to time.

I am also thankful to Prof. Dr. J.K. Sharma for helping me out to complete the project by

taking feedback about the progress of the project and offering suggestions from time to time.

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TABLE OF CONTENTS

Chapter Page No.

1.Introduction 6

1.1Company’s Profile 6

1.1.1 Product Portfolio 8

1.1.2 Certifications 11

1.1.3 Awards 11

1.1.4 Marketing Mix of Haldiram’s Food International Limted 11

1.2 Purpose of the Study 15

1.3 Context of the Study 16

1.4 Significance of the Study 16

1.5 Theoretical Framework 16

1.6 Definitions 16

1.7 Summary 16

2 Literature of review 18

3 Research Methodology and Procedure 19

3.1 Purpose of the Study 19

3.2 Research Design 19

3.3 Research Questions 20

3.4 Participants 20

3.5 Data Collection 20

3.6 Instrument Used 21

4 Data Analysis and Findings 22

4.1 Review of Methodology 22

4.2 Result of Research Questions 22

4.3 Summary of Findings 40

5 Conclusions and Findings 42

5.1 Summary of Findings 42

5.2 Discussion of Research Questions 43

5.3 Recommendations 44

5.4 Limitations 44

6 References 45

a. References 45

4

b. Appendix A 46

c. Appendix B 48

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CHAPTER 1: INTRODUCTION

Indian FMCG sector is one of the fastest growing sectors. With its vast population base,

growing middle class and strong macro-economic environment, the Indian market has seen

processed food emerge as the one of its fastest growing segments. Rapid lifestyle

transformation, particularly in urban areas, has resulted in a dramatic increase in the demand

for processed, packaged and ready-to-eat food products. With the packaged salty snacks

generating a whole new space at the kitchen shelves of the Indian families, it has given

chance to many an FMCG companies to explore the market by flooding it with host of

traditional snack savouries. Initially housewives in India used to make namkeen at home, but

with changing times this is gradually fading away and people have started thinking that it is

easier to buy namkeen than make it at home.

Since a traditional Indian family chats over a hot cup of chai with salted snacks by the side

the companies have been making a beeline to grab a market share in the salty snack segment.

Each company has been flooding the market with a variety of snack ranging from the much

traditional alu bhujiya and salted potato chips to the more diverse forms like flavoured chips,

kurkuras and munchies. Companies are devising newer ways to penetrate the Indian houses

with its offerings be it with more assortments, sizes, price, ways of distributing or

advertisements. Hence, this study is based on the effectiveness of the marketing mix of the

company which has been a leader in the salted snack segment since its inception as a branded

house for the salted snack segment, Haldiram Foods International Private Limited.

1.1.1 Company’s Profile

Haldiram Foods International limited today is recognised as a Star Export house, by the

Directorate General of Foreign trade, a Department working under the Ministry of

Commerce, Government of India.

The haldiram’s brand goes way back to 1937 when it was just retail Sweets and Namkeens

shop in Bikaner, Rajasthan. Shri Shivkishan Agarwal, founder of Haldiram’s always

cherished the dream of building an empire which catered to the common man. This dream

was realised in the embodiment of Haldiram’s Nagpur in 1970.

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Haldiram’s Bhujiyawla became operative and soon it became hot favourite of all Nagpurians.

A model factory of its time for manufacturing of sweets and namkeens was set up at:

Haldiram Foods International Limited

880, Haldiram House,

Small Factory Area,

Bhandara Road, Nagpur- 440008

This was followed by a chain of retail outlets and showrooms catering to the varied tastes of

all segments of society. In 1997, Haldiram’s forayed into milk and milk product industry with

products such as Milk, Ghee, Butter Milk, Breads etc, the manufacture of extruded foods

such as vermicelli and 3-D snacks. Today’s Haldiram’s has branch offices at commercial

capitals like Mumbai, Bangalore and Chennai.

It is only due to the untiring efforts of the founder chairman Mr. Shivkishan Agrawal our

dynamic leader that Haldiram is a proud recipient of the International Food Award. Today,

Haldiram is one of the leading players in the snack food industry despite the stiff competition

from the global food giants, earning valuable foreign exchange for our country. Haldiram has

been branded as “The No. 1 Brand” in ready-to-eat snack food category and as India’s most

trusted brand in 2003.

Employing state-of-art technology from Italy, Haldiram’s started producing high quality

ready to eat snacks, savouries and sweets. From sourcing raw materials to their conversion

into finished products, everything is done as per the international norms (HACCP) of Quality

and Safety. A human touch is avoided to ensure superior hygiene. Apart from the exclusive

recipes and high quality products, variety has been a key factor behind the company’s

popularity.

In its mission to make available Sweets, Snacks, Savouries and Pappadam globally through

well established marketing networks, Haldiram’s developed a new range of products under

the brand name MO’PLEEZ covering vermicelli, macroni, and 3-D pallets using Italian

machinery. Presently they export their products to Canada, Australia, Italy, Sri Lanka, United

States of America, Poland, Singapore, Hong Kong, and many more other countries.

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1.1.2 Product Portfolio

The following are the products offered by Haldiram Foods International Limited in

the ready-to-eat segment:

Namkeens:

Name Available in

Bhujiya Sev Rs. 3, Rs.5, Rs. 10 packs, 150gms, 350gms, 600gms,

1kg

Alu bhujiya Rs. 3, Rs.5, Rs. 10 packs, 150gms, 350gms, 600gms,

1kg

Lahsun Sev Rs. 10 pack, 150gms

Ratlami Sev Rs. 5, Rs.10 pack, 150gms

Moong Dal Rs. 3, Rs.5, Rs. 10 packs, 150gms, 350gms, 600gms,

1kg

Nimbu Sev Rs. 3, Rs.5, Rs. 10 packs, 150gms

Khata Meetha Rs. 3, Rs.5, Rs. 10 packs, 150gms, 350gms

Navratan Mix Rs. 10 pack, 150gms

Mixture Rs. 3, Rs.5, Rs. 10 packs, 150gms, 350gms

Kaju Masala

Fatafat Bhel 30gms

Bhelpuri

Cornflakes chiwda Rs. 10, 150gms

Tasty Nuts Rs. 3, Rs.5, Rs. 10 packs, 150gms

Salted Peanuts

Chana Chor

Khari Boondi

Phalhari Chiwda Rs. 3, Rs.5, Rs. 10 packs, 150gms

Salted Kaju

Alu Lachha 150gms

Mathri 150gms

Mini Samosa 150gms

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Bhakarwadi 150gms

Muruku 150gms

Chatpati Dal Rs. 3, Rs.5, Rs. 10 packs, 150gms

Chatpata Mutter Rs. 3, Rs.5, Rs. 10 packs, 150gms

Methi Gathiya Rs150gms

Bhavnagri Sev Rs.10 pack

Golden Mixture Rs.10 pack, 150gms, 350gms

Kashmiri Dalmoth 150gms

Papad:

Name Available in

Udad papad 200gms, 500gms, 1kg

Moong papad 200gms, 500gms, 1kg

Bikaneri papad 200gms, 500gms, 1kg

Chips:

Name Available in

Halke Fulke (plain salted) 15gm, 25gm, 55gm

Halke Fulke (tangy tomato) 15gm, 25gm, 55gm

Halke Fulke (red chilli) 15gm, 25gm, 55gm

Takatak (chatpata masala) 15gm, 25gm, 55gm

Takatak (tangy tomato) 15gm, 25gm, 55gm

Bytes (yummy bytes) 25gms

Bytes (fun bytes) 25gms

Bytes (love bytes) 25gms

Banana Chips (plain salted) 35gms

Banana Chips (black pepper) 50gms

Potato Lite

Sweets:

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Name Available in

Gulab Jamun 500gm

Rasgulla 500gm

Rasbhari 500gm

Chamcham 500gm

Sugarless Soanpapdi 250gms

Chocolate Soanpapdi 250gms

Soanpapdi 250gms

Orange Soanpapdi 250gms

Coconut Soanpapdi 250gms

Soan Cake 250gms

Badam Halwa 200gms

Shrikhand 100gms, 250gms, 500gms, 1kg

Drinks: (bottle 700ml)

1) Orange Squash

2) Pineapple Squash

3) Kala Khatta

4) Rose

5) Lemon

6) Khus

7) Kesar Badam

8) Thandai Treat

9) Strawberry Crush

10) Mango Panna

1.1.3 Certifications

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M/s Haldiram’s Nagpur has recently got an ISO 9001-2000 certification and HACCP

certification by DNV CERTIFICATION B.V., Netherlands. We have the distinction of being

a member of renowned International Associations viz., European Snack Association (ESA),

Snack Food Association (SFA).

1.1.4 Awards

Haldiram’s has been a proud recipient of many awards such as the International Food Award

from TROFEO International Alimentation of Barcelona, Spain (1999).

Shri Shivkisanji Agrawal, chairman of the Haldiram’s Group has also received award titled

“VIDARBHA GAURAV PURASKAR”.

1.1.5 Marketing Mix of Haldiram Foods International Limited

PRODUCTS

Haldiram's offered a wide range of products to its customers. The product range included

namkeens, sweets, sharbats , bakery items, dairy products, papad and ice-creams . However,

namkeens remained the main focus area for the group contributing close to 60% of its total

revenues.

By specializing in the manufacturing of namkeens, the company seemed to have created a

niche market. While the Nagpur unit manufactured 51 different varieties of namkeens, the

Kolkata unit manufactured 37 and the Delhi unit 25. The raw materials used to prepare

namkeens were of best quality and were sourced from all over India.

Haldiram's sought to customize its products to suit the tastes and preferences of customers

from different parts of India. It launched products, which catered to the tastes of people

belonging to specific regions. For example, it launched 'Murukkus,' a South Indian snack, and

'Chennai Mixture' for south Indian customers.

Similarly, Haldiram's launched 'Bhelpuri,' keeping in mind customers residing in western

India. The company offered certain products such as 'Nazarana,' 'Panchratan,' and 'Premium'

only during the festival season in gift packs. These measures helped Haldiram's compete

effectively in a market that was flooded with a variety of snack items in different shapes,

sizes and flavors.

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PRICING

Haldiram's offered its products at competitive prices in order to penetrate the huge

unorganized market of namkeens and sweets. The company's pricing strategy took into

consideration the price conscious nature of consumers in India. Haldiram's launched

namkeens in small packets of 30 grams, priced as low as Rs.5.

The prices also varied on the basis of the type of namkeens and the raw materials used to

manufacture it. The cost of metalized packing also had an impact on the price, especially in

the case of snack foods. The company revised the prices of its products upwards only when

there was a steep increase in the raw material costs or additional taxes were imposed.

PLACE

Haldiram's developed a strong distribution network to ensure the widest possible reach for its

products in India as well as overseas. From the manufacturing unit, the company's finished

goods were passed on to carrying and forwarding (C&F) agents. C&F agents passed on the

products to distributors, who shipped them to retail outlets. While the Delhi unit of

Haldiram's had 25 C&F agents and 700 distributors in India, the Nagpur unit had 25 C&F

agents and 375 distributors.

Haldiram's also had 35 sole distributors in the international market. The Delhi and Nagpur

units together catered to 0.6 million retail outlets in India. C&F agents received a commission

of around 5%, while distributors earned margins ranging from 8% to 10%. The retail outlets

earned margins ranging from 14% to 30%. At the retail outlet level, margins varied according

to the weight of packs sold.

Retailers earned more margins ranging from 25% to 30% by selling 30 gms pouches (priced

at Rs.5) compared to the packs of higher weights. Apart from the exclusive showrooms

owned by Haldiram's, the company offered its products through retail outlets such as

supermarkets, sweet shops, provision stores, bakeries and ice cream parlors. The products

were also available in public places such as railway stations and bus stations that accounted

for a sizeable amount of its sales.

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Haldiram's products enjoyed phenomenal goodwill and stockists competed with each other to

stock its products. Moreover, sweet shops and bakeries stocked Haldiram's products despite

the fact that the company's products were competing with their own products.

PROMOTION

Haldiram's product promotion had been low key until competition intensified in the snack

foods market. The company tied with 'Profile Advertising' for promoting its products.

Consequently, attractive posters, brochures and mailers were designed to enhance the

visibility of the Haldiram's brand. Different varieties of posters were designed to appeal to the

masses.

The punch line for Haldiram's products was, 'Taste of Tradition.' Advertisements depicting

the entire range of Haldiram's sweets and namkeens were published in the print media

(magazines and newspapers). These advertisements had captions such as 'millions of tongues

can't go wrong,' 'What are you waiting for, Diwali?' and 'Keeping your taste buds on their

toes.

'To increase the visibility of the Haldiram's brand, the company placed its hoardings in high

traffic areas such as train stations and bus stations. Posters were designed for display on

public transport vehicles such as buses, and hoardings, focused on individual products were

developed.

Packaging was an important aspect of Haldiram's product promotion. Since namkeens were

impulse purchase items, attractive packaging in different colors influenced purchases.

Haldiram's used the latest technology (food items were packed in nitrogen filled pouches) to

increase the shelf life of its products. While the normal shelf life of similar products was

under a week, the shelf life of Haldiram's products was about six months. The company

projected the shelf life of its products as its unique selling proposition. Posters highlighting

the shelf life of its products carried the caption 'six months on the shelf and six seconds in

your mouth.' During festival season, Haldiram's products were sold in attractive looking

special gift packs.

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The showrooms and retail outlets of Haldiram's gave importance to point of purchase (POP)

displays. Haldiram's snacks were displayed on special racks, usually outside retail outlets.

The showrooms had sign boards displaying mouth-watering delicacies.

Haldiram's also diversified into the restaurant business to cash in on its brand image. The

company established restaurants in Nagpur and Delhi. The restaurant at Nagpur devised an

innovative strategy to increase its business: It facilitated people who were traveling by train

through Nagpur station to order food from places where stockists of Haldiram's Nagpur unit

were located. The customers could order for lunch/dinner by sending a demand draft (DD) or

cheque to the Nagpur unit or giving the same to specified local distributors belonging to the

Nagpur unit. Along with the DD/cheque, customers had to provide information such as the

name of the train, its likely time of arrival at Nagpur, their names and coach and seat

numbers.

POSITIONING

The above initiatives helped Haldiram's to uniquely position its brand. Haldiram's also gained

an edge over its competitors by minimizing promotion costs. Appreciating the company's

efforts at building brand, an analyst said, "Haldiram once was just another sweet maker but it

has moved into trained brands first by improving the product quality and packaging through

its clever products and brilliant distribution it had moved into the star category of

brands."Haldiram's earned recognition both in India and abroad. The Nagpur unit of

Haldiram's was conferred the International Food Award by the Trofeo International

Alimentacion of Barcelona, Spain for having maintained high standards in quality and

hygiene, at its manufacturing unit.

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1.2 Purpose of the study

The present day scenario of the salted snack food segment shows an immense scope of

reaching out to a vast base of customers owing to the fact that the Indian consumer has

opened up to spend more amount on this segment in their weekly or monthly budget due to

lack of time and wanting to utilize the time on hands in a more efficient manner than earlier.

For any company to tap on this opportunity and garner maximum benefits out of this growing

trend should have a proper marketing mix. Only with an effective marketing mix does a

company have itself positioned in the market. Hence, this study is undertaken for the

company to know more about the effectiveness of their marketing mix, where they lack or

where there is a room for improvement is of utmost importance for it. Thus, for this purpose a

small study has been conducted.

1.3 Context of the study

The Indian market has been a shelf to many a products in the salted snack segment since time

immemorial. Earlier it was only in the unorganised way that this segment used to be through

home-made or gruh udyogs. Slowly it was picked up by many companies and Haldiram’s

was the first company to introduce the Indian market with “branded namkeens”. It becomes

essential for the company to know its positioning in the market. The study is conducted with

the primary focus with factors governing the sale of the products.

1.4 Significance of the Study

Though, a wide range of namkeens and chips are being marketed and the company is reaping

tremendous profits out of them, but there is always a room for improvement. The integration

of good sales and profit generation happens with a good marketing mix strategy. This study

tries to take a look into how effective the marketing mix strategy of the company is from a

retailer’s point, since a retailer is a seller as well as a consumer of the products of the

company.

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1.5 Theoretical Framework

The success of marketing depends on the development of good marketing mix plan. The

marketing mix consists of everything the firm can do to influence the demand for its product.

For any company to be successful it requires serious efforts from the organisation to keep the

market abreast with its products and a strong hold on the retailers so as to reach to a

maximum of the consumer base. In the FMCG segment, it is of utmost importance that the

company has a strong product portfolio with reasonable pricing as well as a strong

distribution network (place) supported by good promotions. The right mix will achieve

marketing objectives and result in customer satisfaction:

Product - this has to look and taste good and be made from wholesome ingredients.

Price - the price has to be attractive to ensure enough sales to generate a profit.

Place - the place and position of the product in the market is important to compete for

market share.

Promotion - this has to fit the company’s objectives for the product.

1.6 Definitions

Marketing Mix: A series of variable factors used by an organisation to identify appropriate

strategies to meet customer needs.

FMCG: is the abbreviated form of fast moving consumer goods. They are products that are

sold quickly and at relatively low cost.

1.7 Summary

The salted snack food segment in the FMCG industry has been on a rise and has been

generating competition from leading brands and also from regional players. For generating

more market share and attracting more consumer base the companies have been steadily

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http://en.wikipedia.org/wiki/Low_cost

diversifying its product mix, creating lucrative offers for the retailers to attack its competitors

and promoting the products aggressively.

The competition has just begun to get healthier and still has huge potential consumer base to

be reached to. In this approximate homogenous market, Haldiram’s need to place itself above

the competitors by providing for an excellent supply of its products and more below the line

promotions for the retailers to be more loyal towards the company.

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CHAPTER 2: LITERATURE OF REVIEW

FMCG- A Roadmap to India 2020 prepared by Booz & Company Inc for the Confederation

of Indian Industry (CII) talks in length about the boost in the FMCG sector, its growth, trends

as well as the implication for the FMCG industry. This report has helped me with knowing

the trends that exist in the Indian market and that shall grow in the upcoming years.

Social Changes and the Growth of Indian Rural Market: An Invitation to FMCG

Sector - covers the attractions for the FMCG marketers to go to rural, the challenges, the

difference between the rural and the urban market and the suitable marketing strategy with

the suitable example of companies and their experience in going rural. This report has helped

me understand the importance of capturing of the rural market in the present day context.

Opportunities in the Packaged Food Market in India- The processed food segment in

India is currently at a very nascent stage. This article has helped me in knowing the drivers

that result in the significant growth in the market such as changes on the demand as well as

supply side such as increasing urbanisation, need for convenience, health consciousness,

increased penetration of organised retail, improved cold chain infrastructure and entry of

international players.

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CHAPTER 3: RESEARCH METHODOLOGY & PROCEDURE

3.1 Purpose of the Study

The main objective of the study is to know the effectiveness of the marketing strategy

used by the company

3.2 Research Design

The research design of the study is descriptive in nature since it provides an answer to

the six Ws as discussed below:

Who is considered?

The retailers from urban, semi-urban and rural market of the city are considered.

What information should be obtained?

a) To know the product mix maintained by the retailers.

b) To know the contribution of the promotional schemes in generating sales for the

company.

c) To know the distribution network of the company.

d) To study the possible pricing strategy to be adopted by Haldiram’s as a voice of the

retailers.

When should the information be obtained from the respondents?

Early in the day before lunch since, the retailers tend to co-operate well during starting

hours of the business rather than post lunch session of the business.

Where the respondents should be contacted to collect the information?

In their shops during the business hours.

Why are we obtaining the information from respondents?

To know the effectiveness of the marketing strategy used by the company and to know

its pitfalls if any.

In what way are we going to obtain the information?

The information is obtained with the aid of a structured questionnaire through personal

interview of the respondent.

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Primary data has been collected through intensive fieldwork from the sample

respondent with the aid of a structured questionnaire.

3.3 Research Questions

1) To know the Product Mix of Haldiram’s maintained by the retailers.

2) To know the impact of Promotions on the sale of Haldiram’s products.

3) To study the possible pricing strategy to be adopted by Haldiram’s as a voice of

the retailers.

4) To study the distribution channel Haldiram’s products.

3.4 Participants

The participants has retailers from various parts of the city like the class A, class B and class

C markets as well as the rural markets of the city. The sampling done here was quota

sampling due to the wide division in the market classes. The number of respondents taken

from class A market were 20, those taken from class B as well as class C markets were 35

each while rest were taken from the rural market.

The total number of respondents taken was 120.

3.5 Data Collection

The data is collected through intensive field work by meeting the retailers personally and

collecting the data with the help of a structured questionnaire of which the results are

discussed later in the report. The questionnaire method was selected because it translated the

information needed into a set of specific question that the respondents can and will answer.

The questionnaire motivates and encourages the respondents to become involved in the

interview to co-operate, and to complete the interview.

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3.6 Instrument Used

The research instrument for the marketing mix of Haldiram’s products was a closed

questionnaire with 14 questions for each segment of chips as well as namkeens for the

retailers through which various aspects of effectiveness of the marketing strategy used by the

company are examined.

Question 4 tells the overall features that give the company its fair place in the market. Many

other questions tell us the link between the promotions of the company with the market area

in which the company distributes its products.

Another question judges the importance of the customization of the packet sizes with respect

to the market areas in which the company distributes its products.

An answer to questions 12 and 13 tells us the relativity between the company’s distribution

patterns with respect with the distribution area it covers.

Question 14 provides with an answer to the motivational factors for the retailers that shall

lead for the betterment of the company’s sales and profits.

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CHAPTER 4: DATA ANALYSIS AND FINDINGS

4.1 Review of Methodology

The survey was conducted through personal interviewing the retailers with the aid of personal

questionnaire. The prime intention of the survey was to know if the marketing mix strategy

used by the company is effective or not. The sample size of the respondents was 120 retailers.

The data analysis is as follows:

4.2 Results of research Questions

1) Do you stock Haldiram’s Products?

Findings:

Product Stock

Frequency Percent Valid Percent

Cumulative

Percent

Valid YES 120 63.5 100.0 100.0

Missing System 69 36.5

Total 189 100.0

As the above interpretation tells us, 100% of the retailer’s stock Haldiram’s products.

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2) Do you stock Haldiram’s Namkeen?

Findings:

Namkeen Stock


Cumulative

Percent

Valid YES 120 63.5 100.0 100.0


Total 189 100.0

As the above table shows, cent percent of the retailer’s stock Haldiram’s Namkeens.

3) Do you stock Haldiram’s Chips?

Findings:

Chips Stock


Cumulative

Percent

Valid YES 116 61.4 96.7 96.7

No 4 2.1 3.3 100.0

Total 120 63.5 100.0


Total 189 100.0

The above frequency chart tells us that 96.7% of the total retailer’s stock Haldiram’s Chips.

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4) Which company according to you is performing better with respect to the other in

Chips segment?

Lehar Frito Lays Haldirams Parle Itc0

5

10

15

20

25

30

35

40

45

Series1

As seen from the above bar chart, it can be very well seen that Haldiram’s chips are

performing very well with respect to the other companies followed by Lehar Kurkure and

Frito-Lays.

5) Which company according to you is performing better with respect to the other in

Namkeen segment?

Haldiram's Balaji Garden SKSM Lehar Others0

10

20

30

40

50

60

70

80

Series1

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As seen from the above bar chart, it is seen that Haldiram Namkeens are the leaders in this

segment with Balaji Namkeens and Garden Namkeen trailing behind.

6) On a scale of 5 how will you rate the following features of Haldiram products? (1=

low rating 5= high rating)

Findings:

Case Processing Summary

N %

Cases Valid 120 63.5

Excludeda 69 36.5

Total 189 100.0

a. Listwise deletion based on all

variables in the procedure.

Reliability Statistics

Cronbach's

Alpha N of Items

.731 5

Here as we can see that the Cronbach Alpha value is 0.731 which is greater than the expected

value of 0.6, hence we can conclude that the samples collected is very reliable and that the

company’s products features are having excellent features.

7) Are the products of the Haldiram displayed at the point of purchase?

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Q7 * Display Crosstabulation

Count

Display

TotalYES No

Q7 YES 71 20 91

No 27 2 29

Total 98 22 120

As seen from the above table, by cross-linking the questions 7 and 8, we can see the

importance of the displays at the point of purchse. As many as 60% of the retailers

say that they keep the products of Haldiram’s at the point of purchase and also that it

plays a vital role in selling of the products.

8) Does the display play any role in influencing the customer buying for Haldiram

products?

9) What is the general buying habit of the customer?

Display * Q9 Crosstabulation

Count

Q9

Totalselected product Choose product

Display YES 50 48 98

No 14 8 22

Total 64 56 120

As seen in the above table with the help of cross-tabulation, cross-linking the role of display

and the general buying behaviour of the customers, i.e., question 8 and question 9 tells us that

almost equal number of respondents say that customers not only buy the products that they

had come to purchase but also many customers come and chose products due to their display.

Hence, we can conclude that display plays an important role in influencing the customers

buying pattern.

26

10) Do you generally exhibit Haldiram’s products before other products?

Q10


Cumulative

Percent

Valid YES 52 27.5 43.3 43.3

No 68 36.0 56.7 100.0

Total 120 63.5 100.0


Total 189 100.0

The above table tells us the percent of retailers who generally exhibit the products of

Haldiram’s prior to products of any other company which is 43.3%.

11) If yes, then please specify why

45%

23%

32%

good qualitygood relations with the companycustomers always ask for it

From the above chart we can see that the company has a strong goodwill in the

market. A whopping 45% of the retailers say that the quality of the products of the

27

company is good while 32% say that the company maintains good relations with them

which motivate them to sell the company’s products. 23% retailers said that the

customers ask for the products of the company.

Hence, it can be seen that the company has a very good reputation in the market. It

has made its channel of distribution very strong by maintaining good relations with

the retailers as well as a good image with the customers which translates into its

successful conversion into sales.

12) Do you think that Haldiram’s customization of packet sizes with respect to the market

has helped in more selling of its products?


Cases

Valid Missing Total

N Percent N Percent N Percent

Q12 * Qma 120 63.5% 69 36.5% 189 100.0%

Q12 * Qma Crosstabulation

Count

Qma

TotalA B C R

Q12 YES 21 45 25 12 103

No 1 4 8 4 17

Total 22 49 33 16 120

Ho: The customization of packet sizes does not help in selling more products.

H1: The customization of packet sizes help in selling more products.

28

Here, the Pearson’s Chi-Square is 7.427 as shown by the test, which is more than that of the

significance level of 0.05, so,

We reject the Null hypothesis in favour of the Alternate hypothesis.

Hence, we can conclude that customization of the packet sizes with respect to the markets has

helped the company in selling more of its products and generate better sales.

Chi-Square Tests

Value Df

Asymp. Sig.

(2-sided)

Pearson Chi-Square 7.427a 3 .059

Likelihood Ratio 7.521 3 .057

Linear-by-Linear

Association

6.248 1 .012

N of Valid Cases 120

a. 3 cells (37.5%) have expected count less than 5. The

minimum expected count is 2.27.

13) Do you think the pricing technique used by Haldiram’s, i.e., using 75% extra

promotional packs on namkeens etc. helping to sell more of its product.


Cases

Valid Missing Total


Q13 * Qma 120 63.5% 69 36.5% 189 100.0%

29


Count

Qma

TotalA B C R

Q13 YES 21 30 11 6 68

No 1 19 22 10 52

Total 22 49 33 16 120

Chi-Square Tests

Value df

Asymp. Sig.

(2-sided)



Linear-by-Linear

Association

19.503 1 .000


a. 0 cells (.0%) have expected count less than 5. The


Ho: The pricing techniques used do not help generate more sales.

H1: The pricing techniques used help generate more sales.

Here we got Pearson Chi-Square Value as 23.604, which is more than the significance

level of 0.05, so

We reject the Null Hypothesis in favour of the Alternate Hypothesis.

We can conclude that the promotional pricing strategies used by the company help

generate more sales.

14) Is the receipt of the stock on time?

30


Cases

Valid Missing Total


Q14 * Qma 120 63.5% 69 36.5% 189 100.0%


Count

Qma

TotalA B C R

Q14 YES 20 37 17 3 77

No 2 12 16 13 43

Total 22 49 33 16 120

Chi-Square Tests

Value df

Asymp. Sig.

(2-sided)



Linear-by-Linear

Association

25.178 1 .000


a. 0 cells (.0%) have expected count less than 5. The


H0: The Receipt of stock is different for different regions

H1: The Receipt of Stock is indifferent for different regions

31

Here we got Pearson Chi-Square Value as 26.235, which is more than the significance

level of 0.05, so

We reject the Null hypothesis in favour of Alternate hypothesis.

Hence we conclude that different regions Class A, Class B, Class C & Rural areas are

receiving stock in similar manner.

Also, from cross-linking the market area with the receipt of stock of the products, it

shows that as the class of the market goes down so does the reception of stock on time.

Hence, it can also be concluded that the company needs to stress upon its distribution

more so as to generate better sales of the products.

15) Are the expected demands fulfilled by the distributor?


Cases

Valid Missing Total


Q15 * Qma 120 63.5% 69 36.5% 189 100.0%


Count

Qma

TotalA B C R

Q15 YES 22 32 18 3 75

No 0 17 15 13 45

Total 22 49 33 16 120

32

Chi-Square Tests

Value dfAsymp. Sig.

(2-sided)



Linear-by-Linear Association

25.273 1 .000


a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 6.00.

H0: The demands are not fulfilled by the distributors.

H1: The demands are fulfilled by the distributors.

Here we got the Pearson’s chi-square as 27.322 which is more than the significance level of

0.05, so,

We reject the Null Hypothesis in favour of the Alternate Hypothesis

So we can conclude that the demands of the retailers are fulfilled by the distributors.

16) What facilities or provisions will motivate you to personally sell a product of a

Haldiram’s?

Cross- Tabulation


Cases

Valid Missing Total


Q16_1 * Qma 120 63.5% 69 36.5% 189 100.0%

Q16_2 * Qma 120 63.5% 69 36.5% 189 100.0%

Q16_3 * Qma 120 63.5% 69 36.5% 189 100.0%

Q16_4 * Qma 120 63.5% 69 36.5% 189 100.0%

Q16_5 * Qma 120 63.5% 69 36.5% 189 100.0%

33

Q16_1 * Qma Crosstabulation

Count

Market Area

TotalA B C R

Q16_1 Best 16 17 13 7 53

2 2 15 10 4 31

3 1 8 4 3 16

4 2 6 2 1 11

Worst 1 3 4 1 9

Total 22 49 33 16 120

By cross-linking the area of market and the provisions that should be provided by the

company, it is found that a total of 53 respondents out of 120, i.e, almost 44% said that there

is a need of greater margin that should be provided by the company which would facilitate

them in selling of the company’s product more.

Only 7.5% respondents said that provision of margin is a least motivating factor to sell the

company’s product

34


Count

Qma

TotalA B C R

Q16_2 Best 0 12 10 4 26

2 8 12 9 5 34

3 7 16 9 3 35

4 0 5 2 1 8

Worst 7 4 3 3 17

Total 22 49 33 16 120

35

As shown in the cross-tabulation between the market area and that of the provision of better

services by the distributor, of the total respondents only 26 feel that it is of utmost importance

while 17 feel that it is of least importance while more than 50% feel that it is of lesser

importance than the other facilities that should be provided so as to motivate them to sell the

company’s products. This shows that the retailers are content with the channel and the

manner of distribution of the company.

36


Count

Qma

TotalA B C R

Q16_3 Best 0 1 1 0 2

2 3 5 4 1 13

3 2 6 3 3 14

4 13 18 16 8 55

Worst 4 19 9 4 36

Total 22 49 33 16 120

The cross-linking between the market area and that of better schemes provision of the

company shows that almost 75% respondents feel that there is not much need of better

schemes provision by the company which will help them motivate to sell the company’s

products.

37


Count

Qma

TotalA B C R

Q16_4 Best 5 15 8 3 31

2 8 13 6 5 32

3 8 13 14 5 40

4 1 6 5 1 13

Worst 0 2 0 2 4

Total 22 49 33 16 120

As is shown in the above cross-link between the various market areas and the availability of

the whole product range, it shows that almost 50% and above respondents think that the

availability of the whole product range should be provided to them in order to motivate them

to sell more of the company’s products.

38


Count

Qma

TotalA B C R

Q16_5 Best 1 4 1 2 8

2 1 4 4 2 11

3 4 6 3 2 15

4 6 14 8 4 32

Worst 10 21 17 6 54

Total 22 49 33 16 120

39

On the last facility asked, the cross-linking of the market area with the provision of rack and

hangers shows that almost 72% of the retailers do not find it as a way of motivation to make

extra efforts to sell the company products.

4.3 Summary of Findings

From the first three questions it is evident that Haldiram’s has a strong place in the market.

All the retailers have given space to the company’s products in their shops. This shows strong

placement of the company in the market.

The display plays a vital role in selling of the products of the Company which is

advantageous and also helps understand its low budget for the promotions. The brand in itself

is well established with the retailers that it doesn’t need much advertisements or promotions

except the occasional news ad prints, radio promotions during the festival season or when it

launches a new product to push its sells up in the market.

40

It is also seen that the company has a strong goodwill in the market. The company has

maintained its relations with the retailers which easily explain in them wanting to display its

products even when the company is short of display racks and hangers. Thus, the company is

keeping a strong hold in the market with the help of a very primitive but effective style of

promotions, i.e., good faith. This easily explains its low spending on the promotions of the

products.

A strong distribution channel in the city market adds to the company’s advantage but it needs

to concentrate more on the rather untapped and more profit generating avenue, the rural

market.

Thus, the marketing strategy so far used by the company is effective.

41

CHAPTER 5: CONCLUSIONS AND RECOMMENDATIONS

5.1 Summary of Findings

From the first three questions it is evident that Haldiram’s has a strong place in the market.

All the retailers have given space to the company’s products in their shops. This shows strong

placement of the company in the market.

The display plays a vital role in selling of the products of the Company which is

advantageous and also helps understand its low budget for the promotions. The brand in itself

is well established with the retailers that it doesn’t need much advertisements or promotions

except the occasional news ad prints, radio promotions during the festival season or when it

launches a new product to push its sells up in the market.

It is also seen that the company has a strong goodwill in the market. The company has

maintained its relations with the retailers which easily explain in them wanting to display its

products even when the company is short of display racks and hangers. Thus, the company is

keeping a strong hold in the market with the help of a very primitive but effective style of

promotions, i.e., good faith. This easily explains its low spending on the promotions of the

products.

A strong distribution channel in the city market adds to the company’s advantage but it needs

to concentrate more on the rather untapped and more profit generating avenue, the rural

market.

Thus, the marketing strategy so far used by the company is effective.

42

5.2 Discussion of Research Questions

To analyze the Marketing mix of the company as a voice of the retailer:

Product: There are as many as 200 (approximate measure) competitors in the salted snack

segment by the way of unorganised retails (gruh udyog in Nagpur region) and almost 5-7

leading brands, international as well as national brands. The products of the various

competitors are almost similar if not same and also the product range. The company is going

strong by diversifying its product portfolio, the latest example being three months old product

Potato Lite which is doing reasonably good since its launch as told by the retailers.

Price: The Pricing of the products is at par with pricing of the leading competitors in the

smaller pack size. The pricing strategy used for the bigger packages, i.e., more than Rs.10

packs product-quality pricing is used by the company as it charges a wee bit higher pricing,

since, the buyers of such packages are mainly people from the middle-class and above.

Promotions: Being a well established brand all across the country and having a strong hold

in the region where its main factory unit is set up, the company enjoys its share of brand

value here. The company needs minimalistic promotions for its products. The above the line

promotion consists of advertisements is in the form of local news paper prints and ad prints in

the local magazines supplemented with the news paper. Another way in which it promotes its

products is by the way of its distribution vehicle. The three-tyre vehicle has Haldiram’s

products painted on three sides. Hence, a cheaper way of promotions is used by the company.

Though, its below the line promotion needs some reconsiderations. The retailers have nitty-

gritty grievances such as lower margins, unavailability of the whole product range etc. which

if tended to can add to the profits of the company by manifolds.

Place: Being the “local” company of the Nagpur region, the company has a very strong

distribution channel in the city. But the rural market needs to be taken care of, since

companies like PepsiCo. and Balaji have started with their strengthening operations in the

region.

43

5.3 Recommendations

The phrase “SMALL IS BIG” aptly justifies the findings of the project. The company needs

to take care of the smaller things in order to make the sales revenue shoots up. Minor

problems of the retailers, if tended to, can yield more profit for the company.

The retailers in the urban area though maintaining a good relation with the company have an

advantage of higher margins with the other companies. If this problem is looked upon by the

company then greater sales can be generated.

Complete product range needs to be provided to the retailers in order to generate more loyalty

towards the brand. But for this the company needs to balance the demand and supply of the

products by increasing the production.

The company needs to take care of the rural market more since, it a market yet untapped by

other companies in a way Haldiram’s has. Though the distribution is still weak in this area, if

worked upon will garner more loyal retailers than in the urban areas.

5.4 Limitations

The study was undertaken in the Nagpur region only.

Since, many retailers were unable to provide with proper answers, instead of quota sampling

for various market areas, judgemental sampling was used.

The project studies the marketing mix strategy of the company on the superficial grounds.

44

CHAPTER 6: REFERENCES

Mohankumar T.P. and Shivaraj B.(2010): Product Mix Strategies: FMCG in Indian

Market

Rohit Chadha, Rohit Bhatiani, Sajani Mrinalini Dutta: Opportunities in the Packaged

Food Market in India

Priya Jha (2009): Visual Display

Booz and Company for CII(2010): FMCG- A Roadmap to India 2020

Social Changes and the Growth of Indian Rural Market: An Invitation to FMCG

Sector

45

APPENDIX A

QUESTIONNAIRE:

1) Do you stock Haldiram’s Products? Yes No

2) Do you stock Haldiram’s Chips? Yes No

3) Which company according to you is performing better with respect to the other in Chips segment?

Lehar Frito-Lays

Haldiram’s Parle ITC Balaji

LeharFrito-LaysHaldiram’sParleITCBalaji

4) On a scale of 5 how will you rate the following features of Haldiram products? (1= low rating 5= high)Quality 1 2 3 4 5Quantity 1 2 3 4 5Price 1 2 3 4 5Brand Name 1 2 3 4 5Taste 1 2 3 4 5

5) Are the products of the Haldiram displayed at the point of purchase? Yes No

6) Does the display play any role in influencing the customer buying for Haldiram products?

46

Yes No

7) What is the general buying habit of the customer? They come with the product in their mind They come to the store and then choose

8) Do you generally exhibit Haldiram’s products before other products? Yes No

9) If yes, then please specify why _____________________________________

10) Do you think that Haldiram’s customization of packet sizes with respect to the market has helped in more selling of its products?

Yes No

11) Do you think the pricing technique used by Haldiram’s, i.e., using 75% extra promotional packs on namkeens etc. helping to sell more of its product.

Yes No Can’t Say

12) Is the receipt of the stock on time? Yes No

13) Are the expected demands fulfilled by the distributor? Yes No

14) What facilities or provisions will motivate you to personally sell a product of a Haldiram’s? (rank order 1=highest preference and 5=lowest preference )

Greater Margins Better Services by the distributor More schemes from the company Availability of the whole range Racks and Hangers from the company

Thank You for sparing your valuable time!

47

Name of Retail Shop: Area:

APPENDIX B

QUESTIONNAIRE:

1) Do you stock Haldiram’s Products? Yes No

2) Do you stock Haldiram’s Namkeen? Yes No

3) Which company according to you is performing better with respect to the other in Namkeen segment?

Haldiram Balaji Lehar Garden SKSM OthersHaldiramBalajiLeharGardenSKSMOthers

4) On a scale of 5 how will you rate the following features of Haldiram products? (1= low rating 5= high)Quality 1 2 3 4 5Quantity 1 2 3 4 5Price 1 2 3 4 5Brand Name 1 2 3 4 5Taste 1 2 3 4 5

5) Are the products of the Haldiram displayed at the point of purchase? Yes No

6) Does the display play any role in influencing the customer buying for Haldiram products?

Yes No

48

7) What is the general buying habit of the customer? They come with the product in their mind They come to the store and then choose

8) Do you generally exhibit Haldiram’s products before other products? Yes No

9) If yes, then please specify why _____________________________________

10) Do you think that Haldiram’s customization of packet sizes with respect to the market has helped in more selling of its products?

Yes No

11) Do you think the pricing technique used by Haldiram’s, i.e., using 75% extra promotional packs on namkeens etc. helping to sell more of its product.

Yes No Can’t Say

12) Is the receipt of the stock on time? Yes No

13) Are the expected demands fulfilled by the distributor? Yes No

14) What facilities or provisions will motivate you to personally sell a product of a Haldiram’s? (rank order 1=highest preference and 5=lowest preference )

Greater Margins Better Services by the distributor More schemes from the company Availability of the whole range Racks and Hangers from the company

Thank You for sparing your valuable time!

Name of Retail Shop: Area:

49

50

Internship Report_Marketing Mix of Haldirams

Documents

indian market

salted snack segment

satpati marketing manager

research methodology

summary of findings

marketing team

salty snack segment

result of research questions